Before any of you fine people jump up and down and call me a down ramper, please note that I have a position and my sentiment is bullish.
Long term it is my genuine belief that SIR will be a $10-$12 stock. However, the company will not be in this territory until well after it has moved from an explorer to a producer.
With the Maiden JORC for Nova due by month's end the ballgame changes a little. Currently the SIR SP is riding a wave of euphoria based on a world class, potentially even, world first resource. And I expect good news to keep coming over the next week and the SP to keep climbing, moderately. However, it is important to note that SIR still does not produce anything. It does not make revenue, but more importantly it has no costs incurred in making revenue.
What the JORC estimate does is finally put some numbers on the Nova deposit. Don't misunderstand me here, I strongly believe these numbers will be EXCEPTIONAL. But once there are firm numbers some very smart people out there are going to start calculating the cost of pulling all those goodies out of the ground and what the cost benefit analysis looks like.
At this point SIR comes back to the real world somewhat and the share price will start reflecting expected revenue to a degree. Please note that this does not factor in Bollinger or any Polar Bear Gold which will give the SP a boost assuming good reports keep coming in.
So while I have been a long term believer in this company and continue to believe there is a very bright future ahead for SIR and all long term holders, I offer a word of caution to the speculators. You could easily get caught with your pants down in coming months.
For my fellow long term holders good luck, and be brave. There are times this year where SIR will probably be a crying hold, but imho it will be a hold.
All is my opinion of course. As always please DYOR.
SIR Price at posting:
$4.19 Sentiment: Buy Disclosure: Held
